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CII finds growing consensus on proxy access

When it comes to proxy access, companies are falling in line with very similar approaches, according to a new report by the Council of Institutional Investors.

CII is a nonprofit association of pension funds, endowments, and foundations, with combined assets that exceed $3 trillion. Its latest research looked at proxy access bylaw provisions adopted by 347 U.S. public companies. It analyzed data collected by the law firm of Covington & Burling on access bylaws adopted by 2016. A key takeaway: a high percentage of the bylaws incorporate similar key provisions.

Nearly all access bylaws follow the “3 and 3” approach favored by institutional investors, under which a shareholder or group of shareholders seeking to nominate a director via proxy access must own at least 3 percent of outstanding shares for at least three years.